Editor’s note: This article was first published in August 2018, and was later updated; it mentions the pandemic hitting catering and has a heading about businesses to start in 2021. Its market statements (Spanish housing market stabilising after the crisis, dropshipping saturating, ebook authors earning $100,000 to $400,000) reflect 2018 to 2021.
We continue with the third part of our list of profitable small business ideas that need little investment and carry low risk. They can work today and make a lot of money when entrepreneurs execute them well. The first ideas require somewhat more investment. In the second section we set out businesses you can start with no capital or very little money.
So if you’re looking to start a low-investment, high-profit business, we hope you’ll find this list complete and useful.
To see the earlier parts of the list of profitable small business ideas, here are the links:
- 30 small business ideas, part 1
- 21 small business ideas that can be very profitable, part 2
- 18 business ideas with no investment
Which businesses make a lot of money with little investment
52. Handmade furniture
This kind of business idea would be better suited to someone who already knows carpentry or is very handy, but it’s true that you can find entrepreneurs online who are making a lot of money without having worked in the trade before.
You can learn to make handmade furniture and show your pieces at shows, studios or local shops, even more upmarket ones. You can also create your own website and promote them online. As we said in the other articles, anything handmade can command a higher price. In fact, one of the customers with the highest demand for this product is luxury hotels.
53. House painting
You can do it low-cost or offer more professional painting. You can paint only exteriors, or you can paint interior rooms in original, creative ways.
Some entrepreneurs started this idea as a summer business, even hiring professionals to do the hardest part of the work, although as a rule, if you’re going to offer a low-cost exterior painting service, you can quickly learn to sand, clean and paint.
54. HR services
As a rule, a small company doesn’t hire a full-time human resources person until it reaches a considerable size, but it can hire a professional in this field a couple of times a week.
This service is easy to offer if you’re comfortable visiting companies to sell them your HR services. In other cases, there are firms that come in once a week to provide sales training, or just to do the hiring. Businesses like this are profitable and require little investment.
55. Irrigation services
This kind of small business already has quite a lot of competition, which is a good sign. It means the business works, and to beat the competition, as we know, we only have to do it better than the rest and offer something more.
In this service we install and service underground sprinkler systems in homes and businesses. The good thing about this kind of company is that it doesn’t just sell and install the system; it also sells annual maintenance, since sprinkler heads can break or may need replacing.
56. Catering services
This is one of the most talked-about small business ideas of recent years, since these companies can serve food at special events. Or, thinking smaller, it could be a single person serving a small group of people. It’s a matter of specialising in a particular niche and offering your services.
It has been a profitable business, but during the pandemic this sector was one of the hardest hit.
Profitable small business ideas with high returns that you can start with little money
57. Image consultant
Given that people tend to judge you on first impressions, and that the halo effect is very powerful both personally and professionally, a good image consultant at a reasonable price will help us instantly improve our attractiveness. Remember that being good-looking and being attractive are two different things. If you’re given the choice, always choose to be attractive.
58. Make-up and beauty consultant
I have an interview lined up with a young woman from Granada who works as a make-up consultant, which may be much the same as saying she’s a professional make-up artist, although, as we’ve said before, the name of our profession can sometimes mean we charge more or less.
A big mistake is to think that make-up is only for women, when in film and television men also wear light make-up to hide their imperfections. To succeed in this profession, you have to do a good sales job to make your services known. We’ll talk about this point in a future article.
59. Map publisher and distributor
Adams started two different map businesses when he was at university, and later sold them. One was a street map of a local tourist area, which he sold to retailers while also selling advertising on the back of the maps. The other was a tourist map of an exotic island, which he sold at retail. It’s true that with today’s navigation systems and online maps it might seem this business wouldn’t work any more, but the fact is that local business sponsors are still interested both in advertising and in selling this kind of map.
See also: If you don’t have the money to start your business, do it this way
60. Mobile hairdressing
You can start a hairdressing business in your own home or go to your clients’ homes, but there’s also the option of setting up a salon in a van, as some entrepreneurs already do, and offering both hairdressing and beauty services. This small business works, but it’s also true that in many countries or cities you’d have the authorities on your back because it isn’t allowed.
Another small business that needs no money would be a home hairdressing and beauty service.
61. Pet “taxi” service
Pets open up hundreds of business opportunities. Now imagine you have to take your pet to the vet and you have to work, or you don’t have a car, or you simply aren’t equipped to take your pet from one place to another. This business idea could work if you offer a professional service along these lines.
Obviously you’ll need a vehicle adapted for transporting pets, because if the pet is a giant dog, you can’t just put it in the passenger seat.
See also: 7 pet-related business ideas
62. Advertising, one of the most profitable businesses
Companies still hire other companies to promote their products or open up markets. In this business, the key is specialisation. You can specialise in promoting technology companies or in opening up markets in a particular region.
In my case, one of my first businesses was introducing companies’ products and services into eastern Andalusia. In other words, if you were a company from the north of Spain or a foreign company and wanted to sell your products quickly in Andalusia, it was easier to turn to someone with the necessary contacts and the right team of people to do it fast. The problem with this business is that once the product has been introduced and the distribution network set up, they don’t need you any more.
63. Smartphone repair and parts
With smartphones as expensive as they are, people are forced to get them repaired. That’s why shops specialising in phone repairs are one of the businesses booming right now. If you want to make this small business even more profitable, you can also sell accessories and even phones. Later on you can talk to phone service providers about offering and selling lines from the main carriers.
64. Vintage clothing business
The good thing about this kind of clothing line is that you don’t need to compete with other retailers or with companies like Zara or Primark. You can also get better profit margins. Believe it or not, if you can make a name for yourself in this sector, it’s a business that makes money, probably more than you think, because vintage never goes out of fashion for a very well-off segment of the population.
In fact, the vintage business has been booming lately.
Which online businesses make money and need little investment to start
There are plenty of ways to make money online, but without a doubt one of the most profitable, whatever many people think, is affiliate marketing. But you have to do it professionally and put in a lot of hours.
What’s clear is that it’s a low-investment business that over time can bring in a lot of profit, as long as you find a way to drive traffic to your affiliate links.
65. Affiliate marketing
What is affiliate marketing? Basically, it means using a website or blog where we place certain links to a product, and if the user buys that product, we get a commission on the sale. The biggest affiliate programmes, where you can make the most money today, are Amazon, ClickBank and ShareASale. In a previous article we covered many of the ways anyone can earn some extra money online.
These links don’t have to go only on a blog: you can also share them on social media, but of course the most advisable thing is to put them on a blog you own and rank that domain to attract organic traffic.
That way, this idea brings us passive income over time. And that really is a profitable business.
66. Dropshipping with AliExpress
Another of the most profitable ideas of recent times. Basically, it consists of selling other companies’ products as if we were selling them ourselves, with the company itself shipping the product to the customer’s home. Here we explain how to sell AliExpress products this way.
It’s a business that makes money, but it’s getting more and more saturated, and the market has filled up with snake-oil sellers.
67. Selling a course to the masses online
As we’ve explained before, this is the business that fake gurus are currently using to make money. Basically, it consists of creating a course and using Facebook ads to put it in front of hundreds of thousands or millions of people. Statistically, a percentage will buy. The truth is these courses tend to be very repetitive, and almost all of them end up explaining how to do what the gurus themselves do, which is sell a course online. That said, if you have something of value to offer, you can certainly sell your own course.
68. Content creator for businesses
Every company needs content to update its website and attract search engines. It’s something they’re willing to pay for. More than that, it’s a necessity. If, on top of being creative and knowing how to create good content, you understand search engine optimisation techniques, you can easily make a living from this kind of business.
This business makes a lot of money if you do it well. We’ve already talked about the woman who earned more than $900 an hour writing from home.
See also: How this woman makes money writing from her sofa
69. Ebook publishing is still a business that makes money
Realistically, publishing books isn’t an easy road to riches. Getting rich by publishing your own ebook can be really difficult. There’s a lot of competition and it’s getting harder and harder to get your book noticed, especially when some people give their work away just to get known. But there’s still room for the good writer who has important and useful things to say.
Every day we hear stories of writers earning $100,000 or even $400,000 from publishing their ebook. Are they black swans? Probably, but if you can see a way to become a black swan and you’re good at writing, it’s a business opportunity you shouldn’t let slip, because it has high earning potential.
70. Fashion blog
Besides being fun to create, a fashion blog is in a sector that monetises well. Advertisers compete fiercely with each other, so ad bids are high, and that’s very profitable for you. Even if you achieve only moderate success with your blog and get it known, advertisers themselves will be delighted to promote their brands on your site.
That said, building a blog with a significant number of visitors takes a lot of time and work. But once it’s done, you’d have one of those businesses that make money every day and generate passive income.
71. Online researcher
The internet has powerful reach for research, and companies are willing to outsource this work to freelance researchers. The more specialised you are, the more demand you’ll get, and of course the more you’ll be able to charge for your services.
Building a personal brand in this business can earn you a lot of money.
72. Podcasting
Probably the radio of the future, and, apart from the odd exception, free for listeners. If you like this field, there are many ways to make money from podcasting, including sponsorships and ad spots. However, just as we said about creating blogs, it can take time to build a loyal audience.
Today, if you want to make even more money from this business, you can also upload your podcasts to YouTube, getting double the views and therefore more income.
73. Product reviewer
We see it all the time: bloggers and YouTubers talking about products and reviewing them. How do you make money reviewing products? Through the affiliate links to the products you review. Even if you give a product a negative review, you can always talk about a better alternative and put the link to the product you’re discussing in the article or video description.
To succeed as a product reviewer, what you have to avoid is being bought by brands, with your audience noticing that you’re praising a product only because the company paid you. That would cost you credibility, and goodbye business.
74. CV and cover letter help
This is a business very few people have thought of. The CV is still important, and the cover letter even more so. But not everyone knows how to write a CV or how to make it stand out from the competition. If you’re good at this, you can help people, for a low price, to put together their CV, write it properly, draft a good cover letter, and advise them on improving their chances of being hired.
See also: What the perfect CV looked like in 2018
75. SEO specialist
SEOs make sure websites and blogs get better positions in search engines. Companies depend on SEO to some extent, because some receive most of their orders online, and most of their users arrive through search engines.
On the other hand, small local businesses neglect to rank their websites, in many cases because they don’t know how important SEO is.
SEO has proved to be one of the most profitable businesses of recent years in terms of earning potential relative to investment.
Business ideas with high profits
Here we’re not talking about businesses you can start with little money, but with a certain amount of investment you’ll get good returns.
76. Advertising agency
With new digital ad options and the rise of video as an effective form of advertising, developing an advertising programme is more complex than ever. That’s why companies increasingly depend on third parties to solve the marketing puzzle and bring potential customers to their door.
To start out as an advertising agency you’ll need a broad view of marketing. However, nobody today can be expected to be an expert in every aspect of marketing, so you’ll also need some contacts who can bring in expertise when you need it.
77. Owning a rental apartment building
This kind of business certainly isn’t small, but it is very profitable. Some people have started out with just a couple of apartments or a few family homes. Of course, we’ll also have to deal with the other drawbacks this sector brings, and it’s often a matter of hiring someone else to handle the day-to-day headaches.
78. Car wash
There are two lines of business in car washes. One is everything that’s automated, where either the machines clean the car or the customer does all the work, washing the car themselves with pressure hoses and all the extras.
The second line of business is even more profitable, with a higher margin but also more work: cleaning the vehicle thoroughly, inside and out. In other words, leaving the car as if it had just come out of the dealership. Really, setting up your own car wash business isn’t hard.
Other profitable small business ideas you can start in 2021
These businesses still make money today.
79. Estate agent
One of the best small business ideas is becoming an estate agent.
This business is booming right now because, after the property crisis, the market is starting to stabilise and house prices are even rising again, so new estate agencies are opening once more. The good thing about being an estate agent is that you can start with zero investment, since all you need is properties to sell and clients who want to buy them.
In other words, the work is out on the street. As you start making money, though, it’s a matter of getting premises or an office to be more visible to clients. Estate agents have the opportunity to be among the biggest earners in a rising property market, compared with the zero risk they take on.
80. Concert promoter
Some people have started this small business with little-known bands in small venues. Over the years, you can move up to bigger-name acts and bigger venues for your shows.
81. Fundraising company
All those calls you get, and all those times you’re stopped in the street and asked for money on behalf of a non-profit seeking donations, usually aren’t non-profits at all but fundraising companies.
Does that mean you’re not supporting a cause? Not exactly. You are, but let’s just say less money reaches the cause than these companies take. Admittedly, they are working to raise funds for causes. Either way, starting a fundraising company requires little money and is profitable.
82. Liquidator
This business isn’t well known in Spain, but you could make a lot of money with this idea. There are companies that work exclusively as specialists in liquidating retail shops. As a rule, a liquidator comes into a business and buys everything that isn’t guaranteed. If the company is a retail shop, they personally hire the shop’s staff to run a different kind of sale.
Obviously, to work in this business you need to be very clear about what you want to do and how, and you certainly need to be a skilled, expert negotiator, because here it really is true that the business lies in buying cheap and selling dear. It ranks among the quintessential profitable businesses.
83. Meal preparation service
Meal preparation services are booming thanks to the internet, which makes the work easier. Today it’s easier than ever to attract and serve customers. The market includes both older people and busy working people who don’t always want to take the time to cook.
These services usually offer only a few meal options each day, but they vary the selection. The secret in this business is getting known and building up a good base of regular customers. The best thing about this idea is that your operating costs grow as your client base grows. That way, we minimise the risk.
84. Mobile billboard advertising
A profitable business that I’m sure you’ve seen on taxis and buses when they carry advertising. Some companies act as intermediaries between advertisers and those with space to offer. We can even take this service to individuals or other companies that have delivery lorries and don’t mind carrying extra advertising. And then there are other companies that have built a million-euro business out of billboards.
85. Outplacement services
This is another business idea imported from other countries, since in Spain, at least, we don’t know much about this kind of employee-relocation agency. Companies hire outplacement services to help their former employees, showing that they care and reducing the chances of being sued for unfair dismissal.
It isn’t easy to break into this business, but once you’re in, it can be highly profitable, especially if you do a good job relocating thousands of employees for a company that has carried out mass layoffs. This business is ideal for people with business contacts and experience in human resources.
86. House flipping
Entrepreneurs tend to do this both as a main business and as a side business. Those who’ve done it on the side have done better, which may be because they’ve waited for the best moment to buy the property.
The concept is simple. You buy an old or run-down property (a bargain), renovate it and sell it for much more. That’s all there is to it. This business makes a lot of money and the investment is low.
87. Selling used industrial equipment
Many companies spend outrageous amounts of money on industrial machinery, and even when they close down they’re still paying for it. That’s why more and more companies are renting rather than buying. And we could apply this to small businesses too, with lower-cost machinery, since for small businesses spending on machines can be terrible for their early finances. In this business you can also make add-on sales such as maintenance, supplies and repairs.
88. The wedding of your life business
Because a wedding can break with convention. I’m sure you’ve seen those weddings on the seashore, or those original weddings in exotic or unusual places. Specialise in this kind of wedding. You can even handle the video and editing by teaming up with a professional, which later on will become your best showcase for what you do.
You could even make an offer: if your first wedding doesn’t turn out as you hoped, 50% off your second one.
Featured image: Micheli Design, CC0 1.0, via Wikimedia Commons.
